honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Saturday, June 14, 2008

Continental Micronesia cuts Guam flights to Hong Kong, Bali, Saipan

By Brett Kelman
Pacific Daily News

HAGATNA, Guam — Guam's travelers will soon face higher prices, longer flight times and more congested aircraft on trips to Hong Kong, Bali and Saipan.

Yesterday, Continental Micronesia announced it would be cutting flights to and from Guam.

Rising fuel costs forced Continental to suspend nonstop flights from Guam to Hong Kong and Bali, beginning July 28 and Oct. 2, respectively, according to a news release from the airline. Flights between Saipan and Manila will also end on July 16.

"While these are very difficult decisions to make, the record fuel costs, combined with lower customer demand in these markets, lead to the decision to suspend service," said Continental Micronesia Chief Executive Officer and President Mark Erwin.

Since January 2007, jet fuel costs have spiked dramatically, increasing almost $100 per barrel, or more than 140 percent. Each dollar of oil increase has an annual impact to Continental Airlines of $45 million, a Continental news release said. The airline burns $169 a second on fuel, the release said.

"No one can speculate on what crude oil will do and that has been the leading contributor to the suspension. Until market conditions improve and fuel costs are reduced, (Continental) will suspend Hong Kong and Bali flights from Guam," said Grace Garces, with Continental Micronesia's marketing office.

Customers booked on canceled and suspended flights will be contacted by Continental to arrange alternate flights or, at the election of the customer, a ticket refund.

Last Friday, Continental announced reduced flights and layoffs of about 3,000 managers and employees worldwide.

Garces confirmed yesterday that the airline has offered voluntary layoff packages to Guam employees.

She said it won't be known how many local employees would leave Continental until August, because employees need time to sign up for voluntary separation programs.